According to a new report from BloombergNEF (BNEF), the United States and Europe are set to dominate global clean hydrogen production by 2030. As a result, countries hoping to become major exporters of clean hydrogen, such as Australia, India, the Middle East, Africa, and Latin America, might be disappointed due to lower-than-expected global demand for imported hydrogen.
The US and Europe’s Leading Role
The report highlights that the US and Europe will be the primary producers of clean hydrogen. In the US, the majority of this hydrogen will be “blue hydrogen,” which is produced using natural gas but with carbon capture and storage to reduce emissions.
Limited Demand for Imports
While many countries around the world have ambitious plans to export clean hydrogen, BNEF’s analysis suggests that the demand for imported hydrogen will not be as high as these nations anticipate. This means that regions like Australia, India, the Middle East, Africa, and Latin America will only contribute a small fraction to the global market by the end of the decade.
Key Takeaways
- Dominance of the US and Europe: These regions will lead in clean hydrogen production by 2030.
- Focus on Blue Hydrogen in the US: Much of the hydrogen in the US will come from natural gas with carbon capture.
- Lower Import Demand: Countries planning to export large amounts of hydrogen may find less global demand than expected.
This shift underscores the importance of focusing on local production and demand dynamics in the emerging clean hydrogen economy.
